Chaparral Energy, Inc. and affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Davis Polk & Wardwell, LLP as legal counsel.
The firm will render these legal services:
(a) prepare legal papers;
(b) advise Debtors regarding their rights, powers and duties in the continued management and operation of their businesses and properties;
(c) prepare documentation and pleadings and take all necessary actions in connection with debt restructuring, statutory bankruptcy issues, post-petition financing, strategic transactions, asset sale transactions, securities laws, real estate, environmental, labor, employee benefits, business and commercial litigation, and corporate and tax matters;
(d) take all necessary actions to protect and preserve Debtors’ estates;
(e) take all necessary actions in connection with any potential sale of all or substantially all of Debtors’ assets;
(f) take all necessary actions in connection with any Chapter 11 plan, disclosure statement and all related documents; and
(g) perform all other legal services in connection with Debtors’ Chapter 11 cases.
Davis Polk’s hourly rates are as follows:
Partners $1,370 – $1,685
Associates $560 – $1,095
Paraprofessionals $325 – $450
The firm will also charge Debtors for out-of-pocket expenses incurred.
Debtors provided Davis Polk with advance payments of $500,000 on May 13 and $1 million on July 2 to establish and maintain a retainer. As of the filing of Debtor’s cases, Davis Polk held a retainer balance in the approximate amount of $1,668,745.50.
Damian Schaible, Esq., a partner at Davis Polk, disclosed in court filings that the firm and its employees are “disinterested persons” as defined in Section 101(14) of the Bankruptcy Code.
Mr. Schaible also made the following disclosures in response to the request for additional information set forth in Paragraph D.1 of the U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement?
Answer: Davis Polk has agreed to negotiated discounts off of its standard rates.
Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case?
Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference.
Answer: In March 2020, Debtors applied rates that reflected an additional discount to Davis Polk’s billing rates.
Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period?
Answer: Davis Polk intends to provide a prospective budget and staffing plan for these Chapter 11 cases and will continue to work with Debtors on the budget and staffing plan. Additionally, the Court has approved a general 13-week Debtor budget on an interim basis which includes Davis Polk’s engagement.
The firm can be reached through:
Damian S. Schaible, Esq.
Angela M. Libby, Esq.
Jacob S. Weiner, Esq.
Davis Polk & Wardwell LLP
450 Lexington Avenue
New York, NY 10017
Telephone: (212) 450-4000
Facsimile: (212) 701-5800
About Chaparral Energy
Chaparral Energy, Inc. is an independent oil and natural gas exploration and production company headquartered in Oklahoma City. Founded in 1988, Chaparral Energy is focused in the oil window of the Anadarko Basin in the heart of Oklahoma. Visit http://www.chaparralenergy.com for more information.
On Aug. 16, 2020, Chaparral Energy and its debtor affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11947). Charles Duginski, chief executive officer, signed the petitions. At the time of the filing, Debtors disclosed total assets of $595,167,000 and total liabilities of $522,288,000 as of June 30, 2020.
Judge Mary F. Walrath oversees the cases.
Debtors have tapped Davis Polk & Wardwell LLP and Richards, Layton & Finger, P.A. as counsel, Intrepid Partners, LLC as investment banker, Rothschild & Co. as financial advisor, and Opportune LLP as restructuring advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent and administrative advisor.